Dogecoin (DOGE), Ethereum (ETH), and Solana (SOL) have all recorded double-digit declines in the past 24 hours, following surges after U.S. President Donald Trump announced a federal crypto reserve last Friday.
ETH is down 11.4% in the past 24 hours and down 13.9% week over week, according to CoinGecko, despite Trump saying it is set to be included in the U.S. crypto reserve in a post on Truth Social. It dropped to $2,035, its lowest level since November 2023, while its price ratio versus Bitcoin reached a historic low last month.
SOL fell 16.1% over the past 24 hours and is down 2.9% on the week, following Trump’s crypto reserve announcement. It’s trading at its lowest price since early September 2024, after hitting another three-month low just weeks ago, amid skepticism about the future of Solana-based meme coins.
Meanwhile, DOGE recorded losses of 12.4% in the past 24 hours and 6.6% week over week. It’s hovering at its lowest level since early November 2024. Despite not being named in Trump’s crypto reserve plans, it still spiked alongside the rest of the crypto market’s post-announcement surge.
Dr. Sean Dawson, head of research at options platform Derive.xyz, thinks the rapid price declines could be due to uncertainty around the details of Trump’s reserve plans.
“This market behavior highlights that while announcements like Trump’s strategic reserve can spark short-term excitement, the lack of clarity and follow-through can lead to rapid corrections,” Dawson said. He added that, “Volatility will likely remain high as traders navigate the uncertain year ahead.”
He pointed to the fact that high-profile figures from the crypto industry have criticized the inclusion of non-Bitcoin digital assets in the strategic reserve, among them Gemini co-founders Cameron and Tyler Winklevoss and Coinbase CEO Brian Armstrong. Investment firm Bernstein has also been skeptical of the move.
Cameron Winklevoss recently tweeted that “Bitcoin is the only asset that meets the bar for a store of value reserve asset,” adding, “Maybe Ethereum.”
Valentin Fournier, analyst at crypto research firm BRN, attributed the harsh declines to “Trump’s confirmation that 25% tariffs on Mexico and Canada will take effect on March 4th” which he said are “injecting uncertainty into the market” and creating a “risk-off sentiment.”
The total market cap of all cryptocurrencies is down 10.7%, according to CoinGecko. But it’s not just cryptocurrencies that have recorded poor performances in recent months; stocks are down across the board, particularly in the tech sector ahead of Trump’s tariffs.
The Nasdaq is down 2.64% at the time of writing, while the S&P 500 is down 1.76%, per data from Yahoo Finance.
Crypto research group QCP also highlighted other macroeconomic factors as being behind the crypto market’s price correction, such as falling yields of 10-year U.S. Treasury bills.
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